Zimbabwean telecoms companies have not ruled out the possibility of increasing the prices of their services once again. Under the aegis of the Association of Zimbabwean Telecom Operators (TOAZ), TelOne, Econet, NetOne and Telecel challenged the regulator and consumers on the difficulties they have in maintaining their prices for a long time to the detriment of their profitability in the context current economy.

“Like all other sectors in Zimbabwe, the telecoms industry also faces challenges such as shortage of foreign exchange, increasing operating costs, frequent power cuts and significant debt levels. It is essential to quickly address these challenges to maintain the viability and sustainability of the local telecoms sector, allowing it to adapt to technological innovations and have a positive impact on economic growth,” we can read in a recent TOAZ press release.

Since 2019, Zimbabwean telecoms operators have regularly revised their prices upwards, but these adjustments have always proven ineffective, due to the economic crisis reigning in the country. The latest increase dates back to October 2023 with the official exchange rate in April as a reference, which was 5,600 Zimbabwean dollars for 1 US dollar. Since then, the exchange rate has increased to an average of 20,000 ZWL to 1 USD. Telephony and data rates, however, were kept at ZWL 289 per minute and ZWL 29.97 per megabyte, respectively.

A further increase in services should notably enable Zimbabwean telecom operators to increase their revenues and make their activities profitable. This should also allow them to invest in the extension and modernization of their networks in order to guarantee quality services to customers.

“Investments in ICT infrastructure are essential to expand geographic coverage and transition to new, faster and more efficient technologies, such as 5G. These investments are largely made in foreign currencies. For example, 5G technology makes it possible to achieve speeds higher than the general needs of users, whether individuals or businesses,” TOAZ explained.

Source: Agency EcoFin